The Co-operative Financial Services H1 profit up

The Co-operative Financial Services has reported that its total shareholder profit before tax, significant items and short-term investment fluctuations was GBP73.4 million for the first half ended on July 26, 2008, compared to GBP38 million in the corresponding period of 2007.

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The banking business reported an increased profit before tax and significant items of GBP46.2 million for the first half of 2008, compared to GBP45.5 million in same period of 2007, despite the impact of the credit crunch, including GBP25 million of structured investment write downs.

For the first half of 2008, technical loss from general insurance business reached GBP1.5 million, an improvement of GBP31.8 million, compared to technical loss of GBP33.3 million in the corresponding period of 2007.

In the first half of 2008, gross written premium decreased by GBP5.9 million to GBP220.9 million, with increasing sales volumes being offset by lower average premiums as a result of changes to the underwriting criteria.

Gross earned insurance premiums for life and pensions business in the first half of 2008 were GBP274.4 million compared to GBP290.8 million for the corresponding period of 2007.

David Anderson, CEO of Co-operative Financial Services, said: Whilst we aren’t immune from the economic consequences of the credit crunch, we have a strong balance sheet, very strong retail funding and a clear path for the future of our business.